The Impact of Green Bond Issuance on Corporate Environmental and Financial Performance: An Empirical Study of Japanese Listed Firms

Yutong Bai ()
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Yutong Bai: Graduate School of Economics, Nagoya University Furo-cho, Chikusa-ku, Nagoya 464-8601, Aichi, Japan

IJFS, 2025, vol. 13, issue 3, 1-26

Abstract: Based on firm-level data of Japanese listed companies for the period of 2013–2022, this study conducts an empirical analysis to investigate how the issuance of green bonds influences corporate environmental and financial performance. The results show that the green bond issuance demonstrates a reduction in corporate greenhouse gas emission intensity and energy consumption intensity in the long term. Moreover, the issuance of green bonds enhances the financial performance of firms in the long run. However, the positive effect of green bond issuance on corporate environmental and financial performance is significant only among firms that have set specific quantitative environmental targets. In addition, for manufacturing and transportation green bond issuers that have set specific quantitative environmental targets, the improvement in environmental performance is evident in both the long and short term.

Keywords: green bonds; greenhouse gas emissions; energy consumption; corporate financial performance; sustainable finance (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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